Parasite bankers have been plundering U.S. credit since close of WWII via Federal Reserve; economic chickens finally coming home to rooste

To the list of mega-corporations bailed out by the U.S. government, we now must add — Europe. In an announcement that rocked financial markets worldwide, the European Central Bank revealed today a concerted effort in combination with four other major central banks — the Bank of England, the Bank of Japan, the Bank of Switzerland, and yes, the U.S. Federal Reserve — to use dollars rather than euros in an attempt to paper over the European Union’s economic woes.

Starting in October, the Federal Reserve and other major central banks will begin auctioning allotments of dollars to the European Central Bank, which will then use the new money to shore up shaky European megabanks. The allotments, which will have three-month maturities and will be structured like typical repurchase operations (“repos”), will be issued against euro-denominated collateral and repaid, with interest, in dollars. That at least is the theory.

Currency swaps involving the Federal Reserve and other central banks are nothing new, and have been a focal concern of Fed opponents such as Congressman Ron Paul, who has long suggested that much of the Fed’s financial chicanery has been carried out in the form of such currency deals with foreign central banks, in total secrecy. This time around, the deal is being touted openly as an unprecedented exercise in international coordination by the world’s central banks, a decisive move to solve Europe’s long-running sovereign debt crisis...

Since Bretton Woods in 1944, the United States has enjoyed the unexampled ability to print dollars at will and export them to the rest of the world. The result has been transgenerational inflation against a backdrop of boom and bust, with every economic crisis being an opportunity to turn on the printing presses. That the rest of the world has accepted this state of affairs for so long is perplexing, since it has allowed the United States to enrich itself at the expense of everybody else — or at least, everybody willing to accept American fiat currency (a currency unbacked by a precious commodity).

But America has paid a price, too, in the form of an Olympian national debt that now threatens to drive our country into bankruptcy. And in spite of the abysmal failure of every effort by the Fed and the U.S. government to stimulate the economy back to life, the Fed is going to embark yet again on a program of bailing out financial elites with taxpayer-backed dollars.

And what if the ECB and the entire EU falls apart as a result of the debt crisis (which cannot and will not be solved by printing money)? Italy and Spain are faltering, and Greece has all but been given permission to default. A Greek default would likely trigger defaults in Ireland and Portugal for starters, events which by themselves could cause the entire EU to unravel. What then will happen to all of those loaned dollars which the ECB has promised to repay?

The Federal Reserve, without so much as a congressional by-your-leave (let alone constitutional authority) has been playing Russian roulette with the American economy ever since the onset of the financial crisis, throwing bad money after bad and producing no outcome other than lengthening and deepening the crisis. Sooner or later, in an event economists like to call “capitulation,” the global markets will tumble to the reality that no amount of debt and stimulus will cure our malaise; only the shock therapy that the free market provides will do that. When that realization finally dawns, currencies will collapse, stocks and bonds will implode, and debtors, including sovereign debtors, will default. The world that will rise from the ashes of that event will look very different from the world we live in now.

When that time of reckoning arrives, we may at least hope that the Federal Reserve will finally be abolished, and that Americans will understand clearly the monetary fraud that has been perpetrated on them. Until they do, the Federal Reserve will continue to print dollars for bailing out foreigners...MORE...LINK